pawnshop act b.e.2505 (1962)

Unofficial Translation*

Pawnshop Act B.E.2505 (1962)

__________________

BHUMIBOL ADULYADEJ, REX.

Given on the 25th Day of December B.E.2505;

Being the 9th Year of the Present Reign.

His Majesty King Bhumibol Adulyadej is graciously pleased to

proclaim that:

Whereas it is deemed expedient to revise the law on pawnshop,

Be it, therefore, enacted by the King, by and with the advice and

consent of the Constitution Drafting Assembly acting as Parliament, as

follows:

Section 1. This Act is called "the Pawnshop Act B.E.2505 (1962)"

Section 2.1 This Act shall come into force from the day

following the date of its publication in the Government Gazette.

Section 3. The Pawnshop Act B.E.2480 (1937) and the Pawnshop

Act (No.2) B.E.2484 (1941) shall be repealed.

Section 4. In this Act:

“Pawnshop”2 means any premise accepting a pledge as security for

a loan in its normal operations whereas each transaction has a principal

1 Government Gazette, Vol 79/ Part 115/ Special Edition, page 4/31 December 2505 2 Section 4 the Definition of “pawnshop” as amended by the Pawnshop Act (No. 4) B.E.2534 (1991)

DISCLAIMER: This translation is prepared by the Department of Provincial Administration or by other

persons commissioned by the Department of Provincial Administration as the competent authority for

information purposes only. Whilst the Department of Provincial Administration has made efforts to ensure

the accuracy and correctness of the translation, the original Thai text as formally adopted and published

shall in all events remain the sole authoritative text having the force of law.


2

not exceeding one hundred thousand baht. The meaning shall include the

accepting or purchasing of goods by making payment as normal practice,

whereas the total amount of each transaction is not exceeding one hundred

thousand baht, and having an agreement or understanding, either directly

or by implication that the redemption can be made later on.

“Pawnbroker” means any person who receives pawnshop license.

“Pledged Property” means items being pledged.

“Licensing Officer” means an officer, being appointed by the

Minister, who has duty to grant pawnshop license and perform other duties

as prescribed under this Act.

“Minister” means the Minister in charge of this Act.

Section 5. There shall be the Pawnshop Control Committee

comprising the Permanent Secretary of Interior as its Chairperson;

Director Generals of the Royal Thai Police, State Prosecutor, Department

of Provincial Administration, Department of Public Welfare as its

members, and Chief of Registration Division of the Royal Thai Police as

its member and secretary.

Section 6. The Pawnshop Control Committee has the following

authority and duties:

(1) defining areas where pawnshop will be allowed to operate;

(2) defining number of pawnshop in any area as appropriate;

(3) considering an application for a pawnshop license or a request

for relocation of a pawnshop;

(4) other activities as prescribed in this Act.

The definitions as prescribed in (1) and (2) shall be published on the

provincial hall in the locality.


3

Section 7. At any meeting session of the Pawnshop Control

Committee, not less than half of the members must be present to constitute

a quorum. In any meeting that the Chair is not available or unable to be

altered, members who present shall choose any member to act as chair of

the meeting.

Committee deliberations shall be decided by majority vote.

Each member shall have one vote. In case of tied vote, the chair of

the meeting shall cast a decisive vote.

Section 8. No person shall operate a pawnshop unless such person

obtains a pawnshop license.

Application for a pawnshop license and granting of a pawnshop

license shall comply with rules and procedures as prescribed in the

ministerial regulations.

In any area where certain numbers of pawnshops have been defined,

the application for pawnshop licenses shall be made by bidding in

compliance with rules and procedures prescribed in the ministerial

regulations.

The provisions in paragraph three shall not apply to the application

for the municipality’s or the governmental pawnshop license.

Section 9. A person who files an application for a pawnshop license

shall have the following qualifications:

(1) not less than 20 years of age;

(2) not having improper behavior or immorality;

(3) not a person of unsound mind or mental infirmity;

(4) not being bankrupt;


4

(5) never having been imprisoned by the Court’s final judgment

imposing prison sentences, excluding minimal offences or offences

causing by negligence;

(6) not being subjected to pawnshop license revocation;

(7) not having behaviour that may interfere or destroy economy or

national security.

In the case where an applicant for a pawnshop license is a juristic

person, a director and a manager of the said juristic person shall also have

the qualifications under this Section.

Section 10. After due consideration by the Pawnshop Control

Committee, and it is deemed appropriate to permit any applicant for the

establishment of a pawnshop whether it is by bidding or not, the licensing

officer shall thereafter grant pawnshop license to such person.

In the case where the Pawnshop Control Committee does not permit

the applicant to establish the pawnshop, the pawnshop license requester

shall have the right to file an appeal to the Minister. The appeal shall be

submitted to the licensing officer within thirty days after the date of

objection notification. The Minister’s decision shall be final.

Section 11. Pawnshop license shall be valid until the 31st of

December of the year the license was granted.

Section 12. The pawnbroker must display a sign of pawnshop

in the format as prescribed by the licensing officer in a conspicuous place

in front of the pawnshop.

In cases of municipal or public pawnshop, the municipality or the

public agency may use other names rather than “pawnshop”. However, the

terms must be approved by the Pawnshop Control Committee.


5

Section 13. The pawnbroker shall provide for a safe inventory

of pledged property in pawnshop area as prescribed by the Pawnshop

Control Committee.

Section 14. The pawnbroker is prohibited to relocate the

pawnshop unless it is approved by the Pawnshop Control Committee. The

application for relocation and its permission shall comply with procedures

as prescribed in the Ministerial Regulations.

Section 15. In the case where a pawnbroker is a juristic person,

whenever there is any change to director or manager, the pawnbroker shall

notify the licensing officer within fifteen days after the change.

Section 16. The pawnbroker shall display a sign in Thai

showing interest rates in the format as prescribed by the licensing officer

and display it in a conspicuous place inside the pawnshop.

Section 17. The pawnbroker is prohibited to charge or receive

interest rates exceeding the following:

(1) principal amount not exceeding 2,000 baht, at 2 % per month;

(2) principal amount exceeding 2,000 baht, at 1.25 % per month.

Interest calculation in cases of period less than one month, if a period

less than fifteen days it shall be calculated as half month, if a period over

fifteen days it shall be calculated as one month. Small amount of one

satang shall be written off.

In the case where the pawnbroker receives other monies or

properties from the pledge in addition to interest, such monies or

properties shall be deemed as interest.

Section 18.The pawnbroker shall be prohibited from performing the

following actions:


6

(1) taking a pledge or allowing for redemption of pledged property

between 18 hrs and 8 hrs.

(2) taking a pledge for any items from monks, novices or minors less

than fifteen years of age.

(3) taking a pledge for any items knowingly that are government

assets or items as notified under Section 21.

(4) taking a pledged for property outside of the pawnshop, unless in

order to perform actions under this Act, or having permission from the

licensing officer or to avoid any severe hazards that the pawnbroker is

unable to prevent by other methods.

(5) Carrying out business that is not relevant to pledge or selling of

the forfeited pledged property in the pawnshop areas.

Section 18 bis.3 In taking pledge, the pawnbroker shall keep records

of particulars related to identification card of the pledgor on the stub of the

pawn ticket.

In the case that any pledgor who is not required to carry on

identification card under the law, information and particulars on a

substitute document showing name and address of the pledgor shall be

recorded.

Section 19. In cases of having reasonable doubt about wrongful

possession of goods being pledged by any pledgor, the pawnbroker shall

immediately notify administrative officials or local police officers.

Section 20. At the time of pledge, the pawnbroker shall issue a

pawn ticket to the pledgor and affix a number on the pledged property to

correspond with the number on the pawn ticket.

3 Section 18 Bis added by the Pawnshop Act (No,2) B.E.2517 (1974)


7

A pawn ticket shall comply with forms prescribed under the

Ministerial Regulations.

Issuance of a pawn ticket shall conform to the procedures and

conditions laid down in the Ministerial Regulations.

Section 21. After the licensing officers, administrative officials

or police officers or officers who have the duty to publish detailed

descriptions of missing items notify the pawnbroker about missing items,

the pawnbroker shall have the duty to inspect pledged property or items to

be pledged. In cases of any item having the same or similar descriptions

to missing items notified, the pawnbroker shall submit such item to the

notifying officer immediately. In the case where a pledge has been made,

a copy of a pawn ticket shall also be attached.

Section 22.4 Subject to Section 23, the pawnbroker shall permit

redemption of the pledged property when the pledgor brings a pawn ticket

requesting redemption. The pawnbroker shall record particulars under

Section 18 bis. Upon the redemption, the pawn ticket shall be kept by

attaching to the stub of the said pawn ticket. The date of redemption shall

be recorded on the stub of such pawn ticket. The person who redeems the

pledged property shall affix his signature on the stub of the pawn ticket.

Section 23. The pawnbroker shall not allow redemption of the

pledged property in the following cases:

(1) The pawnbroker is notified by administrative officials or police

officers that the pledged property or a pawn ticket is in possession from

wrongdoing; or;

(2) The pawnbroker has reasonable doubt that the pledged property

or a pawn ticket is from wrongdoing.

4 Section 22, amended by the Pawnshop Act (No,2) B.E.2517 (1974)


8

In the case where the pawnbroker does not allow for redemption of

any pledged property, the pawnbroker must notify administrative officials

or local police officers, and shall notify licensing officers without delay.

Section 24.5 The pawnbroker shall return the pledged property

to its owner without making any demand to the owner to make payment

for debts arising from such pledged property in the following cases:

(1) taking pledges knowing that pledged items are government

assets;

(2) taking pledges for any property or items being notified under

Section 21;

(3) taking pledges knowing or having reasonable grounds for

knowing that pledged property come from wrongdoing;

(4) taking pledged property without keeping records under Section

18 bis.

The provisions under paragraph one shall not restrict the rights of

the pawnbroker to make demand from the pledgor for debts arising from

the pledge.

Section 25.6 The pawnbroker shall keep a book of records of pledges

of which pledgors do not pay interest for more than four months and

submit it to licensing officer. It shall be conspicuously posted at such

pawnshop according to the forms and procedures as prescribed by the

Ministerial Regulations.

After all actions under the previous paragraph having been fulfilled

by the pawnbroker, all the pledged property listed in the book of records

kept and announced by the pawnbroker, whichever are not under a seizure

order by the licensing officer or not having been redeemed by the pledgor

5 Section 24, amended by the Pawnshop Act (No,2) B.E.2517 (1974) 6 Section 25, amended by the Pawnshop Act (No,2) B.E.2517 (1974)


9

within thirty day after the announcement, shall be forfeited and become

possession of the pawnbroker.

Section 26. After the forfeiture of pledged property, the

pawnbroker shall record date of forfeiture and transfer of rights on the stub

of the pawn ticket. In the case that the pawnbroker sells or changes any

conditions on the forfeited pledged property, the date of sale or changes

of such pledged property shall be recorded on the stub of the pawn ticket

Section 27. The pawnbroker shall maintain accounting books

and submit monthly statement to the licensing officer in compliance with

format and procedures as prescribed in the Ministerial Regulations, within

fifteen days after the end of the month.

Section 28. The pawnshop inspector, appointed by the

Minister, has the power to enter the pawnshop for inspection of pledged

property and other documents concerning a pledge. The pawnbroker must

facilitate them as appropriate.

The pawnshop inspector must have an identification card as

prescribed by the Ministerial Regulations. Such identification card must

be presented upon request by stakeholders.

Section 29. The Pawnshop Control Committee has the power to

suspend the pawnshop license for a period not over three months or to

revoke the pawnshop license, in case it appears that:

(1) any pawnbroker or director, manager or staff of the pawnbroker

violate the provisions of this Act or Ministerial Regulations issued under

this Act; or,

(2) any pawnbroker or director or manager of the pawnbroker who

is a juristic person does not have qualifications under Section 9.

In cases of suspension or revocation of a pawnshop license, when

the Pawnshop Control Committee deems appropriate, it may direct the


10

licensing officer to take control of the pawnshop where the pawnshop

license is suspended or the pawnshop license is revoked.

Section 30. The pawnbroker has the right to file an appeal

against suspension or revocation of pawnshop license by the order of the

Pawnshop Control Committee under Section 29. The appeal shall be

submitted to the Minister through the licensing officer within thirty days

after the date of receipt of teh order.

The decision of the Minister shall be final.

Section 31. The pawnbroker shall not take any pledge during

the suspension of the pawnshop license or after the revocation of the

pawnshop license. Such person still has obligations towards pledgors and

must comply with this Act and Ministerial Regulations issued under this

Act. The person shall be deemed as a pawnbroker under this Act as far as

it is related to pledges carried out earlier.

Section 32. A pawnbroker who wishes to dissolve a pawn

business may do so by submission of a written notification to the licensing

officer at least seven days before the dissolution of the pawnshop.

Any person dissolving a pawnshop business shall not take pledge

after the dissolution. Such person still has obligations towards pledgors

and must comply with this Act and Ministerial Regulations issued under

this Act. The person shall be deemed as a pawnbroker under this Act as

far as it is related to pledges carried out earlier.

Section 33. Any pawnbroker who is required to dissolve a pawn

business due to the expiration of pawnshop license, and has yet to receive

a renewal pawnshop license, still has obligations towards pledgors and

must comply with this Act and Ministerial Regulations issued under this

Act. Such person shall be deemed as a pawnbroker under this Act as far

as it is related to pledges carried out earlier.


11

Section 34. For the cases under Sections 32 and 33, when the

Pawnshop Control Committee deems appropriate it may issue an order to

control such pawnshop.

Section 35. In the case of death of the pawnbroker, the

successor to the deceased pawnbroker may file an application to act as a

pawnbroker in replacement of the deceased pawnbroker. In case the

Pawnshop Control Committee deems the said successor as having

appropriate qualifications under Section 9, the Pawnshop Control

Committee may grant a permit to that successor to act as a pawnbroker to

replace the deceased pawnbroker. In such case it shall be deemed that the

successor is the pawnbroker according to the pawnshop license granted

earlier to the deceased.

Section 36. In case no one makes any request to be substitute

pawnbroker to replace the deceased pawnbroker, and over thirty days has

lapsed since the date of death of the pawnbroker, or the request is made

but no permission is granted for a person to be substitute pawnbroker, or

objections are raised by other successors and no agreement can be reached,

such pawnshop shall be dissolved and the licensing officer shall take

control over the pawnshop.

Section 37. Upon an order being made by the Pawnshop

Control Committee to control any pawnshop, the licensing officer shall

send a written notice to the pawnbroker of such pawnshop, and

immediately take control of such pawnshop. The Control shall be made by

taking over the operations of such pawnshop for the pawnbroker or

inspection and oversight by allowing the pawnbroker to carry out

management of the pawnshop appropriately and properly.

Control of the pawnshop may be done either by defining a specific

duration or not. And after taking control, the control may be terminated at

any time by the decision of the Pawnshop Control Committee.


12

Upon the order of the Pawnshop Control Committee to terminate the

control of any pawnshop, the licensing officer shall notify the pawnbroker

in writing and stop control according to the said order.

Section 38. In performing duties under this Act, the Pawnshop

Control Committee and the licensing officer have power to order a

pawnbroker or director, manager and staff of pawnbroker who is a juristic

person to give statement or show books of accounts, documents and other

items relating to the pawnshop business.

Section 39. Any person who violates Section 8 paragraph one

or Section 31 shall be punished with fine of between two thousand and

twenty thousand baht or imprisonment not exceeding two years, or both.

Section 40. Any pawnbroker who violates Section 17 shall be

punished with fine of between thousand and twenty thousand baht or

imprisonment not exceeding three months, or both.

Section 41. Any pawnbroker who violates Sections 12, 13, 14,

15, 16, 18, 19, 20 paragraph one, 21, 22, 23, 26, 27 or violates Ministerial

Regulations issued under Section 20 shall be punished with fine not

exceeding two thousand baht.

Section 42. In the case that provisions under this Act stipulate

offences committed by a pawnbroker, if any director, manager or

employee of such pawnbroker commits or takes part in such offences, such

person shall be punished according to the same provisions prescribed for

the pawnbroker.

Section 43. The Minister of Interior shall be in charge of this

Act, and has the power to appoint licensing officers, pawnshop inspectors,

and issue Ministerial Regulations prescribing fees not exceeding the

schedule annexed hereto and other matters for the execution hereof.


13

Such Ministerial Regulations shall be into force upon publication in

the Government Gazette.

Countersigned by:

Field Marshal Sarit Dhanarajata

Prime Minister


14

Rate of Fees

_______________

(1) Pawnshop license in Phra

Nakhon and Thonburi

provinces

one copy 20,000 baht

(2) Pawnshop license in other

provinces excluding Phra

Nakhon and Thonburi

one copy 10,000 baht

(3) Pawnshop license substitute

one copy 50 baht


15

Remarks: The reason for the promulgation of this Act is because the

Pawnshop Act B.E.2480 (1937) having been in use for long time. The

definition of principal amount, interest rates, license granting,

qualifications of licensee and punishment rates, are not suitable to current

conditions therefore it is appropriate to make amendments.

Pawnshop Act (No 2) B.E.2517 (1974)7

Section 2 This Act shall come into force from the day following the

date of its publication in the Government Gazette.

Remarks: The reason for the promulgation of this Act is because under the

Pawnshop Act B.E.2505 there are loopholes in certain provisions that

pawnshops may take advantage of. In particular, there is no provision

prescribing the pawnshop to keep records of information about the

pledgor. Additionally, there are provisions relating to the protection of

pawnshops whereby they are entitled to charge redemption fee from the

rightful owner of a pledged property, whereas it was later found out that

such pledged property came from the pledgor’s wrongdoing.

If often appears that pawnshops collaborate with pledgors who

possess pledges from wrongdoing, and accept them as pledged items

without recording the identification information of pledgors. In addition,

sometimes it seems that pawnshops may record an amount of money on a

pawn ticket higher than what it should be, with an intent to make unlawful

profit, namely, earning more interest from a higher wrongfully stated

principle, or causing a pledge to be forfeited and become the property of

the pawnshop. Furthermore, upon the redemption of a pledge by its

rightful owner, the pawnshop may claim for the redemption value as stated

7 Government Gazette, Vol 91/ Part 202/ Special Edition, page 11/30 November 2517


16

on the pawn ticket while the rightful owner is unable to demand from the

person who has wrongfully taken possession of the pledged property.

In many countries, pawnshop licenses are only granted to local

government agencies, however, since our local government agencies are

not ready to do the same, it is appropriate to revise the Pawnshop Act

B.E.2505 with stronger provisions in the meanwhile. Thus it is necessary

that this Act is promulgated.

Pawnshop Act (No.3) B.E.2526 (1983)8



Remarks: The reason for the promulgation of this Act is because of

changes in current economic and financial situations causing people to

suffer hardship and difficulties in their general lives. The pawnshop is a

financial institution that can relieve such sufferings and assist people with

daily solutions. However problems may arise in their lives and other

factors that cause pledgors to forget or become distracted by other needs

and easily miss interest payments and debt service may become overdue

according to the terms prescribed under this Act, causing forfeiture of

pledged items and transfer of rights to the pawnshop. Forfeiture of pledged

property may increase difficulties for the poor, therefore, in order to

resolve the problem, owners of pledged property should have more

opportunities and time. In addition, pawnshops should join with

Government in finding solutions to people’s problems in order to

correspond with the goals of establishing the pawnshop. It is therefore

necessary to promulgate this Act.

8 Government Gazette, Vol 100/ Part 44/ Special Edition, page 1/24 March 2526


17

Pawnshop Act (No. 4) B.E.2534 (1991)9



Remarks: The reason for the promulgation of this Act is because the

definition of pawnshop in Section 4 of the Pawnshop Act B.E.2505

currently in force prescribes the principal limit for the pawnshop to accept

pledges as collateral for loan of not over ten thousand baht, and on

accepting or buying items of value not over ten thousand baht, with an

agreement direct or by implication that redemption can be made later.

Currently, the said amount is not appropriate to the economic situations

and cost of living. Therefore in order to support people who are in need or

facing financial difficulties, they should be able to receive more money

for a pledge or in selling their belongings. It is expedient, therefore to

amend the definition of the term pawnshop under the Pawnshop Act

B.E.2505, by increase amount of principal that a pawnshop can accept as

collateral for a loan to not over one hundred thousand baht, and accept or

buy goods for cash not over one hundred thousand baht. It is therefore

necessary to promulgate this Act.

* The Royal Decree Amending Provisions of Laws to be Consistent with

the Transfer of Powers and Duties of State Agencies in Complying with

the Act on Organisation of Ministries, Sub-Ministries and Departments,

B.E.2545 (2002)10

Section 95 in the Pawnshop Act B.E.2505, the wording “the Director

General of Department of Public Welfare” shall be amended to “ the

Director General of the Social Development and Welfare”.

9 Government Gazette, Vol 108/ Part 240/ Special Edition, page 23/29 December 2534 10 Government Gazette, Vol 119/ Part 102 Kor/ page 66/8 October 2545


18

Remarks: The reason for the promulgation of this Act is due to the Act on

Organisation of Ministries, Sub-Ministries and Departments, B.E.2545

having provisions on the establishment of new organisations with new

duties whereby relevant Royal Decrees have been enacted to transfer the

administrative functions, powers and duties of public agencies according

to the said Act on Organisation of Ministries, Sub-Ministries and

Departments. And since the said Act contains provisions on transferring

powers and duties of public agencies, the Minister in charge or public

officials from previous agencies to the new agencies whereby relevant

legal provisions shall be amended to be consistent with such transferred

powers and duties, in order to be consistent with the principles stipulated

in the said Act and related Royal Decrees, it is expedient to amend legal

provisions for consistency with the transfer of powers and duties of public

agencies to be conspicuous to relevant users so that they do not need to

reference other laws related to the transfer of powers and duties regardless

of from which agency to agencies or which parties. Thus legal provisions

must be amended by renaming government agency, the Minister in charge,

or competent officials to be consistent with the transfer of powers and

duties, as well as adding committee members representing new agencies

taking over the functions of other earlier agencies while removing the

names of the agencies being dissolved. Such changes are for consistency

with the Act and Royal Decrees. It is therefore necessary to promulgate

this Royal Decree.

Piromporn/improved

Wasin/inspected

24 June 2013

pawnshop act b.e.2505 (1962)

Documents